Hyundai and Kia shares slide on China sales concerns

Hyundai car on display in China China is one of the biggest markets for many global car makers, including Hyundai

Shares of South Korean car makers Hyundai and Kia have fallen by about 5% on fears of a dip in sales in China.

The concerns were triggered after China's state-owned Xinhua news agency reported that eight Chinese cities were likely to implement curbs on car sales.

The move is being seen as an attempt by authorities to try to control high pollution levels in China.

China is the world's biggest car market and a key driver of growth for firms such as Hyundai.

"China accounts for about 20% of Hyundai Motor's total sales, and such news dampens its China sales outlook," said Suh Sung-moon, an analyst at Korea Investment & Securities.

According to the Xinhua report, the eight cities are Tianjin, Shenzhen, Hangzhou, Chengdu, Shijiazhuang, Chongqing, Qingdao and Wuhan.

If implemented, the restrictions could see car sales dwindle by about 400,000 units, it said.

Protests

Pollution levels in China have risen over the past few years and the country is now the world's biggest polluter.

Poor air quality has become a key political and social issue in China, and some of the biggest and most successful recent protests in China have been triggered by environmental concerns.

Anger over air pollution in Beijing, expressed mainly in online forums, led the local government to change the way in which it monitored pollution levels.

China new leaders have said that improving the quality of life for Chinese citizens is a key policy measure for them.

Last month, the government ordered firms in heavy-polluting industries to cut emissions by 30% by 2017.

More on This Story

Global Car Industry

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Features

  • photo of patient zero, two year-old Emile OuamounoPatient zero

    Tracking first Ebola victim and and how virus spread


  • A young Chinese girl looks at an image of BarbieBarbie's battle

    Can the doll make it in China at the second attempt?


  • Prosperi in the 1994 MdSLost in the desert

    How I drank urine and bat blood to survive in the Sahara


  • Afghan interpetersBlacklisted

    The Afghan interpreters left by the US to the mercy of the Taliban


  • Flooded homesNo respite

    Many hit by last winter's floods are struggling to pay soaring insurance bills


BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.